Gartner

Newsroom

STAMFORD, Conn., July 7, 2009 View All Press Releases

Gartner Says Worldwide IT Spending on Pace to Decline 6 Percent in 2009

Latest Forecast Shows Spending Declines Across Hardware, Software, IT Services and Telecommunications Sectors

Worldwide IT spending is on pace to total $3.2 trillion in 2009, a 6 percent decline from 2008 spending of $3.4 trillion, according to Gartner, Inc. Continued weak IT spending because of the economic situation combined with the effect of exchange rate movements has resulted in Gartner lowering its 2009 forecast from its 1Q09 projection. In March of this year, Gartner had forecast 2009 IT spending to decline 3.8 percent. 

"While the global economic downturn shows signs of easing, this year IT budgets are still being cut and consumers will need a lot more persuading before they can feel confident enough to loosen their purse strings," said Richard Gordon, research vice president and head of global forecasting at Gartner.

"The forecast decline in spending growth for the hardware and software segments in 2009 has almost stabilized, and only minor downward revisions have been made to these forecasts this quarter," Mr. Gordon said. "However, the full impact of the global recession on the IT services and telecommunications sectors is still emerging, and forecast growth in these areas has been further reduced significantly. Moreover, the rise in the value of the U.S. dollar against most currencies in recent months will have a material downward impact on 2009 IT spending growth, which by convention we report based on U.S. dollars."

All four major segments of IT — hardware, software, IT services and telecommunications — will experience declining revenue (see Table 1), something that did not happen in the 2001 downturn.
The computing hardware segment will experience the steepest decline in 2009, with spending projected to decline 16.3 percent. The software segment will show the slightest decrease in 2009, with spending forecast to drop 1.6 percent.

Table 1
Worldwide IT Spending Forecast (Billions of U.S. Dollars)

 

2008 Spending

2009 Spending

2010 Spending

Computing Hardware

379.5

317.8

317.7

   Annual Growth (%)

2.5

-16.3

0.0

Software

221.9

218.3

225.3

   Annual Growth (%)

10.3

-1.6

3.2

IT Services

805.9

761.0

784.0

   Annual Growth (%)

8.2

-5.6

3.0

Telecom

1,945.2

1,855.9

1,898.7

   Annual Growth (%)

5.7

-4.6

2.3

All IT

3,352.5

3,152.9

3,225.7

   Annual Growth (%)

6.2

-6.0

2.3

Source: Gartner (June 2009)

Additional information is available in the Gartner report "Gartner Dataquest Market Databook, June 2009 Update." The report provides detailed regional data for worldwide IT spending through 2013. The report is on the Gartner Web site at http://www.gartner.com/DisplayDocument?ref=g_search&id=1052412&subref=simplesearch.

Contacts
About Gartner

Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. We deliver the technology-related insight necessary for our clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, we are the valuable partner to clients in over 9,000 distinct enterprises worldwide. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 6,400 associates, including more than 1,480 research analysts and consultants, and clients in 85 countries. For more information, visit www.gartner.com.

Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.

Gartner Insight
Gartner Webinars